Great so no damage to internal parts are at risk when it is in sleep mode correct?

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well, it doesn't magically transform into a block of steel when you close the lid. you still have to worry about cracking the screen or potentially busting something else if you drop it/sit on it/punch it etc
all spinning parts turn off. you can hear the hard drive spin down, the dvd drive will stop, and the fans shut off

i gotta stop closing the lid on my macbook, it's a bad habit for me because i open and close it like 100x a day. it's about 10months old and it kinda makes a creek/fart noise when i open the lid